SpeedmasterLapping the Competition on Marketplaces

Company Overview

Speedmaster is a manufacturer of aftermarket automotive components. Established in 1979, the company has grown from a hobbyist engine shop to delivering high-quality products to a mass global market.

It is one of very few automotive aftermarket companies who design, develop, test and manufacture products in their own facilities. Their products and components range from standard V8 replacement parts, through to cylinder heads for Top Fuel Dragsters. By 2017, Speedmaster became Australia’s number one automotive aftermarket brand online store, which increased the focus of sustaining their online presence.

Speedmaster’s primary goal is to create automotive products inspired by old and new technology. As such, Speedmaster focuses on innovation through its three key pillars: people, products and approach. The company operates bricks-and-mortar facilities as well as an online presence. Its main office is located in Campbelltown, Australia, with distribution centres in Sydney, AU and California, US.

A ChannelAdvisor customer since 2009, Speedmaster currently utilises ChannelAdvisor’s Marketplaces platform to support its selling efforts on Amazon and eBay. The company employs over 400 staff in Australia and the US dedicated to e-commerce – including product development, customer service and marketing.

The Situation

Speedmaster’s online presence started in the early 2000s and was relative to the resources available at the time.

In 2013, the company expanded globally. “We became number one in 12 categories as a brand on Global eBay and were placed third largest aftermarket automotive store,” says CEO Jason Kencevski. The company wanted to not only sustain this growth but to become the largest automotive aftermarket brand.  

Speedmaster slowly rolled out on Amazon in 2015, starting with in-house and core branded items. “Since launching, the numbers have just kept growing,” says Kencevski. “We sell more in two categories on Amazon and eBay than any other seller worldwide.”

Speedmaster utilised ChannelAdvisor to standardise international operations and facilitate its growth. Once it achieved this and positioned itself as a market leader, it needed ChannelAdvisor’s support to ensure it retained its spot on top.

“Marketplaces keep raising the bar and we need to keep rising to the challenge. We need to ensure that we provide the best customer service and keep delivering on our value proposition, and we needed a solution that would support us and scale with us,” says Kencevski.

The Solution

Speedmaster had originally deployed ChannelAdvisor Marketplaces in late 2012 to help manage its Australian eBay presence. In January 2014, the company incorporated its US eBay operations onto the ChannelAdvisor platform, and the same strategy was implemented to support its foray into Amazon. The company now utilises ChannelAdvisor’s Marketplaces Module, Digital Marketing Module and the Netsuite Connector to support its global growth across marketplaces.

“One minute we’re not on Amazon, and the next minute we’re on Amazon and it’s all sorted. I don’t even know how we did it to be honest,” says Kencevski.

“The best thing about ChannelAdvisor is that there is no company that allows you to scale like this. To date, we’ve gone from having one, two, five listings to being the largest online shop that ChannelAdvisor can scale,” said Kencevski.

Through ChannelAdvisor, Speedmaster is able to standardise its operations and automate many operational functions, including marketing and customer-service communications. “We chose to consolidate and expand our e-commerce operations with ChannelAdvisor because it ticked all the boxes we were looking for,” says Kencevski. “During our research, the ChannelAdvisor platform came across as the best solution in terms of its ability to automate processes, integrate with our other systems and help us improve the customer experience.”  

“More than ever, it has been really difficult to maintain Top Rated Seller Plus status on eBay. With the growth that we’ve experienced, retaining this position is near impossible,” Kencevski explains. “But with ChannelAdvisor’s support we’ve been able to conform to eBay’s growing and increasingly hard level of output to be a Top Rated Plus seller. We could not have done this without ChannelAdvisor.”

“The ChannelAdvisor platform has removed the complexity in many of our workflows,” says Kencevski. “For example, we were able to develop a programed workflow for customer orders – when a customer places an order, the platform automatically sends out email communications to keep the customer informed of its progress. The company benefits from ChannelAdvisor tools and in response our customer gets a better experience and a higher level of satisfaction. That’s how we maintain the highest level of customer service and delivery.”

In addition, the ChannelAdvisor platform allowed Speedmaster to streamline its data inputs and manage its presence on several marketplaces through a single data feed, thereby reducing the company’s administrative burden.

The Results

Within the first month of launching on eBay in the US via ChannelAdvisor, Speedmaster reports that it has become the top US seller in several categories.

“It’s been really interesting,” Kencevski tells us. “We had instant success with eBay. It was really strong at the start and then continued to show slow growth. Where Amazon year-on-year shows really strong growth. It was a slow start, but it’s been consistently strong thereafter.”

“In the first couple of years [on Amazon US] we were very, very strong and we’re still showing in excess of 30% sales growth year-on-year.” Kencevski says.

“Our immediate success in the US wouldn’t have been possible without the capabilities of the ChannelAdvisor platform,” says Kencevski. “It’s been an invaluable tool across all our channels, especially on the marketplaces.”

“Automation is key,” Kencevski adds. “Complying with everything and worrying about changes that happen all the time isn’t something that keeps us up at night. If we weren’t with ChannelAdvisor, remaining compliant would be a huge headache and stress.”

“Now that we’ve built a solid foundation with ChannelAdvisor, we’re in good stead to achieve further growth in more geographies and through more online channels,” Kencevski concludes. “Speedmaster’s projected global growth is 10-15%, and projected online growth is 50-100%.”



Web: http://www.speedmaster79.com/

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